Tuesday, 17 June 2014

Property prices, sales fall in May

Property prices, sales fall in May

12:20 PM Monday Jun 16, 2014

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The national median house price fell $2250 from April to May this year. File photo / Greg Bowker

House sale volumes and prices are dropping, according to the Real Estate Institute of New Zealand, which has just released its May sales figures.

The national median price fell $2250 from April to May when it was $430,000. Volumes were down 14.8 per cent from last May although they rose between April and May: 6572 houses were sold last month.

Helen O'Sullivan, REINZ chief executive, said the volume easing trend continued with all regions recording a decline in sales volumes in May compared to 12 months ago.

This was the second month in a row volumes had dropped, she said.

"We would normally expect an increase in sales in May compared to April, however, after taking seasonal factors into account the increase was just 1.6 per cent. This leads us to conclude that the drop in sales in April due to the combination of Easter and ANZAC Day has not created an offsetting increase in sales in May.

"The weakening trend is also showing up in the number of days to sell with five regions seeing an increase of a week or more in the number of days to sell between April and May," said O'Sullivan.

Sarah Turner
New Zealand Operations Manager



Ph: 09 834 7936
Mob: 022 043 1226
Toll free: 0800 86 36 36

www.abuyerschoice.co.nz
sarah.turner@abuyerschoice.com

Client referrals are our greatest reward. If you know of anyone who can benefit from our building inspection services, please do not hesitate to let me or them know. I would appreciate the opportunity to assist.

 

Monday, 16 June 2014

Stucco/Plaster failure article by Matt Risinger

An interesting article showing stucco failure by Matt Risinger

 

BY MATT RISINGER • JUNE 10, 2014 • EXTERIORS - SIDING, STUCCO, BRICK, STONE, WOOD, METAL,HOUSEWRAP & WATERPROOFING, UNCATEGORIZED  COMMENTS (7)  1059

Massive Stucco Failure – Lessons Learned

I was driving by this restaurant remodel the other day and slammed on my brakes!

10 year old Restaurant with Stucco Facade

I made friends with the Project Manager and he allowed me full access to the site.  The first and most immediate failure you see is that the parapet walls & caps had huge failures.

Parapets were super rotted

I climbed up to the roof for a better look.  Luckily, the demo crew wasn't quite finished so I got to see some of the layers behind the stucco.The flat tops of the parapet walls had stucco on them.  Stucco is basically a porous cement product so any water that hits stucco will get through to the layers behind in no time.  These flat tops had 2 layers of tar paper behind them with little effort paid to sealing the joints and horizontal/vertical connections.  OUCH.

Tar Paper under the Stucco'd parapet cap.

These rotted parapet caps present three lessons. #1  Don't stucco over a Parapet Cap.  Stucco is porous and any water that sits on the stucco WILL get through.  Parapet caps should have some type of waterproof cap to prevent water from sitting on this horizontal area and leaking behind the WRB (weather resistive barrier). #2 If you MUST do a stucco cap then you'd better waterproof behind the stucco.  Tar paper is not a waterproofing product.  It does resist water, but it's not waterproof.  It's paper that's been impregnated with tar.  Paper is not waterproof.  Tar impregnated paper is also not waterproof.

Transitions from wall to roof obviously were not dealt with properly. Major rot here.

Again a transition from roof to wall with no overhang that leaked big time.

The stucco was installed with the standard double tar paper method.

Sprinkler that was wetting the building and caused huge failures.

This last photo above is particularly interesting.  You see that sprinkler head in the foreground?  That's the only pipe or penetration I could find anywhere near this massive wall rot area.  There was no rot above 4 so the leak wasn't coming from above.  Remember that this building is only 10 years old.  I think this is a perfect example of why I think Tar paper is a terrible product to use for a WRB.  That sprinkler was wetting the wall 2-3x per week at 4Am and no one realized it.  The porous stucco soaked up the water, the tar paper got soaked and eventually the sheathing behind got wet.  There was no opportunity for this wall to do to the inside our outside with that volume of water. ( See this video I made about a stone veneer failure to learn more about Reservoir Claddings including Stucco and Vapor Drive. ) Lesson #3: Plywood rocks.  I realize these photos are pretty horrific, but if this sheathing would have been OSB I think this failure would have been even worse.  The plywood and 2x walls were able to soak up a ton of water and eventually rot happened.  However, if these leaks would have been smaller I think the real plywood and 2x's would have been able to soak up the moisture and slow dry without incident.  Also, in all these photos I never saw any mold growth.  Mold loves the most broken down forms of wood.  Mold loves paper & OSB, but it has a harder time harnessing the food in solid lumber or plywood. Stay tuned for a post later this week on Stucco Best Practices and how you can prevent these failures.  I'm building a house right now with stucco parapet caps and I'll show you the details to do this assembly the right way!

Best,

Matt Risinger - Risinger Homes in Austin, TX

Risinger Homes is a custom builder and whole house remodeling contractor that specializes in Architect driven and fine craftsmanship work. We utilize an in-house carpentry staff and the latest building science research to build dramatically more efficient, healthy and durable homes.

 

Regards,

 

Duane Turner
Office: 09 811 8018
Mobile: 027 376 4806

duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com

Waitakere & Surrounding Areas

 

Friday, 13 June 2014

What happens when the last link in the chain is the strongest?

An interesting take on the situation from an inspector in Seattle:

 

June 10, 2014 by Charles Buell 1 Comment

Is your home inspector a deal killer?

If he needs to be, you better hope so.

In my experience, if a deal goes south after the home inspection, it actually went south WAY before the home inspector ever gets hired. It is a bit like spreading tacks all over the highway 10 miles up the road. You happily drive along without a care in the world thinking nothing but good thoughts and enjoying the scenery. But no matter how enjoyable the ride, or how beautiful the view, it will not alter the fact that there is trouble ahead—you just have not got there yet!

The difference between selling a home and tacks in the road is that the ignored dangers regarding selling a home are almost always known or knowable (pre-listing inspections are looking better and better every day). Not being diligent about what is being put on the market leads to heartache for all parties involved. It is the putting-one’s-head-in-the-sand approach to selling homes.

In my opinion, and I see this over and over, it is the listing agent that typically starts this ball rolling. Now I am willing to be corrected on this but, does the listing agent have any responsibility toward what they are listing for sale? Does a listing agent have any responsibility to ask if permits were drawn for all that nice new work that has been done and that is going to be emphasized in the listing information?

If the buyer, based on the inspection report, asks to see those building permit sign-offs for all the new structural changes, electrical work, plumbing work, and HVAC work, should the buyer not be entitled to them? Who is to blame, if the deal goes south, because there are no permits to show the buyer? How can the home inspector be to blame? The home inspector was the LAST link in the chain–not the first link.

Of course if the seller is the one that did not get the permits to do the work, they would be the first link in the chain, and really should have nobody but themselves to blame for having a product that is not saleable—no matter how tasty the frosting is. They might want to blame the home inspector or even their own agent, but really they only have to look as far as their mirror.

I do wonder though, why would an agent take such a listing? If more agents would say, “Sorry Mr. and Mrs. Homeowner, but I think selling your house might prove very difficult without all the permits for all the beautiful work you have done.”

Surely the money saved by not getting the proper permits will be considerably offset by the costs of delaying a sale. It could possibly even result in having to redo some or all of the work. Of course the buyer, like a great fish on the hook, might break free and swim off to another house, leaving the fisherman to turn off his grill and to start over.

If it was not for the fact that there is a sucker born every day, people would likely always get permits. And as long as this principle is alive and well agents will still likely take the listing. I am not sure I have all that much problem with this—we do live in a buyer-beware country after all.

Just don’t blame the last link in the chain—it is the strongest link and is there to protect the buyer.

 

Charles Buell, Real Estate Inspections in Seattle

Duane Turner
Office: 09 811 8018
Mobile: 027 376 4806

duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com

Waitakere & Surrounding Areas

 

Monday, 9 June 2014

Rates may not rise as quickly as expected: Economists

http://www.goodreturns.co.nz/article/976502093/rates-may-not-rise-as-quickly-as-expected-economists.html

 

Interest rates may not rise as sharply this year as earlier expected, economists say.

Friday, June 6th 2014, 3:27PM

All but one of the economists surveyed by mortgagerates.co.nz this week expect the official cash rate to be lifted by 25 basis points next week.   But many expected only two more increases throughout the rest of the year.

Tom Kennedy, of JP Morgan, said he thought it was a 50/50 call whether the rate was increased in June or July. But, he said, given the data that has come out recently, it looked more likely that the Reserve Bank would wait until July to increase the rate to 3.25%.

“Our overarching view for a while has been that they can take the opportunity to issue a lower inflation growth forecast going forward and it would look a bit funny if they raised rates with that background.”

BNZ agreed there were increasing risks that the interest rate hiking would not be as aggressive as the Reserve Bank previously signalled, because of the dollar being higher than anticipated.  “Lower current inflation adds to this risk. We will be most interested in any discussion around the NZ dollar or commodity price interface and its implications for the OCR outlook ahead.”

BNZ expected another rise in July but then for the rate to remain on hold in September.

Deutsche Bank agreed a short pause might be coming: “We expect the Reserve Bank will leave investors with the impression that conditional on inflation pressures evolving as expected, a short pause in the tightening cycle may soon be appropriate.”

ASB expects the rate to be lifted 25 basis points,  then left alone until late in the year. 

Robin Clements, of UBS agreed the rate would go up 25 basis points this month but said he expected the accompanying announcement to be more hawkish than the market expected, with a focus on the state of the economy and pressures expected to emerge.

HSBC said after the June hike, the rate would remain at 3.25% until December, when it would be hiked by another 25 bps.

“There are some very early signs that higher interest rates, combined with the central bank’s adjustments to its new macroprudential settings, are taking some of the heat out of the housing market. At the same time, dairy prices have fallen back a bit in the past couple of months, from near record high levels. But these are minor setbacks in the grand scheme. Business and consumer sentiment surveys suggest that growth is still running at a well above trend pace. More tightening is likely to be needed.”

Duane Turner
Office: 09 811 8018
Mobile: 027 376 4806

duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com

Waitakere & Surrounding Areas

Friday, 6 June 2014

Hands-on academy

 

Career kickstart: Massey High School students from left: Cassidy Hau, Stefan Gardner and Michael Toleafoa, all 17, arepart of the carpentrytrade academy.

Photo: CIARA PRATT

BUILDING a house while still at high school is not something many students get to do.

But pupils at Massey High School will this month get to hand over a 65 square metre, two-bedroom house they have built.

Now in its third year, about 230 students from the school are involved in the Auckland West Vocational Academy programme.

Massey offers 11 academies including automotive, business, carpentry, electrotechnology and fashion and beauty. The programme comes under the Government's Youth Guarantee initiative which provides more ways to achieve NCEA level 2.

Chris Skinner is the tutor in charge of the carpentry, civil construction and infrastructure academies at Massey. In the carpentry academy, students spend half of the year completing theory and the the rest of the year building a house.

''We aim to give these young men the best possible chance of employment and we're aiming at the big companies,'' he says.

''The goal is when they front up they have got a point of difference to others.

''We treat it like a workplace.

''We don't tolerate slackers or lateness – they come in as boys and they come out as valuable young men.'' The students appreciate the opportunity they've been given.

Skinner says many of the boys wouldn't be achieving at school if it wasn't for the academy, including 17-yearold Michael Toleafoa who says school wasn't for him.

''This is great, it's very physical and you don't have to sit at a desk all day.

''It was a challenge at the beginning starting at 7.30am and finishing at 4pm but I'm more sensible now, I'm more neat and not as lazy as I was before.'' Toleafoa along with a number of other students will start semester two at Unitec this year.

Students in the academy will earn their NCEA level 2 credits as well as qualifications relevant to their specific trade or vocation.

Principal Bruce Ritchie fought for a programme like this for years after realising there wasn't a strong pathway for students who weren't interested in attending university.

''It's helped keep a lot of young people at school and kept them on that pathway.

''It's guaranteeing youth a future.'' Deputy principal John Tinling says he has witnessed major changes among the students.

''To me it's been huge,'' he says.

''There are a large number of students who completely change and their parents see what's happening and support it.''
The house will be auctioned on Trade Me and money raised will go to the New Zealand Housing Foundation.

Duane Turner
Office: 09 811 8018
Mobile: 027 376 4806

duane.turner@abuyerschoice.com
www.waitakere.abuyerschoice.com

Waitakere & Surrounding Areas

 

Thursday, 29 May 2014

Resale is a Leading Indicator of New Product Opportunities

Resale is a Leading Indicator of New Product Opportunities

Kevin Wilzbach - Monday, May 19, 2014 | Comments (0)

 

Resale is a Leading Indicator of New Product Opportunities . . . or

(Item 5 of the top 10 reasons why Builders MUST know resale)

As we continue to share with you the individual elements that make up The top 10 Reasons Why Builders Must Know Resale, it should be clear by now that New Home Marketing Services (NHMS) believes strongly in the power of resale to affect a residential builder’s success in the marketplace.  What we do as a company; the products we deliver; the services we offer, and many of the blogs we write are geared towards helping builders appreciate how resale can impact their business.  For that reason, we believe it is paramount for builders to know resale. 

The list of 10 items we identified as the critical reasons why builders need to know resale comes from years working with builders and brokers. In this blog, we’d like to explore item 5 – “Resale is a Leading Indicator of New Product Opportunities”.

At first glance, it may be easy to discount the argument based upon the blog title.  “I mean, really, how can housing stock that may be 5, 10, 20, or 30 years old, tell me anything about what I should build today?”  Actually, it can tell you quite a lot, particularly if you know how to dissect what’s happening in the resale space.

First, pay attention to what’s listing and selling in the resale space.  Conversely, pay attention to what’s not listing and/or not selling.  Then figure out what that information is telling you.  The beauty of resale housing stock data is that we can learn a lot about each listing.  Each piece of information is a different field that a builder can evaluate.  Some of the information that is normally available includes total room count, bathroom and bedroom counts, number of garages spaces, type of garage, days on market (DOM), and whether the home has a basement. If a builder takes the time to capture listing and selling data on a regular, ongoing basis, he or she can identify opportunity BASED ON FACT.

Now the builder can get really smart.  How are first floor masters trending?  What’s the absorption rate of ranches around my community?  Has there been an uptick in the number of homes selling with a finished basement?  Are buyers purchasing homes with fewer rooms but more square feet?  The list could go on and on.  And at the end of the day, it’s all about using this information to make a conscious decision about starting a spec home or adjusting your plan offerings to take advantage of demand.

A simple example can help bring this to light.  Let’s say a builder has been tracking ranch plan listings and sales.  The builder notices a couple of interesting facts.  First, in a 2.5 mile radius around a particular community, ranch listings are a larger piece of the overall market.  In the last 9 months, ranch sales as a percent of single family sales have increased from 21% to 24%.  Just as importantly, DOM for ranch plans has dropped 22% and months of supply for ranch homes has dropped to 4.8 months of supply.

With this information in hand, the builder steps back to reconsider a couple of things.  First, he or she decides that the next two spec starts will be ranches.  Options and list pricing will be different, but even those decisions are based on fact, drawn from actual sales information.  Second, the builder looks at his or her product offering and decides that the growing demand for ranches is a market opportunity.  The builder recognizes a growing demand for first floor living and decides to introduce a first floor master plan into the product offering for this community. 

Understanding resale allows builders to react quicker to changes in the market place.  Faster reaction time means better product placement and faster sales. Let the resale market help you make more informed product planning decisions and starts.  The end result is likely faster turns with better gross margins.  

 

Wednesday, 28 May 2014

How not to sell your house (and a few tips for pretty property too)

From murky photos to snapping rusty taps and random clutter, hopeful home vendors face plenty of pitfalls when capturing images to display in real estate listings.

Rusty taps, creepy dolls on beds, dishes on the bench, dirty washing in the laundry and even cat bowls with cat food scattered around them.

These are some of the sales faux pas that have popped up in Trade Me's real estate listings over the past year, as gathered by the Herald.

Agents and vendors from all corners of the country have been pointing and shooting at clutter, pulled curtains, televisions left on, intimate family photos left on walls and dirty towels left hanging in bathrooms.

Take a look at some of the worst Trade Me real estate listings

Gallery

Worst house sale photos

 

Some of the photos were unnecessary, such as a close-up shot of a chipped attic hole in the roof, or a zoomed-in frame of the laundry basin, complete with several loose cords. Quite a few babies in bassinets make it into the shots, as well as older children lounging on couches, lying on beds or playing with toys.

Some photos were of a terrible quality and hard to make out, or included an accidental knee or cat tail in the shot.

Surely the hair straightener left on the bed in a Papatoetoe home wasn't such a good idea? And hopefully the fly spray in the Pongaroa house wasn't an indication of what was to come.

Josh Trevarthen of Angles Photography, which specialises in real estate images, said the main thing before taking photos to help sell your home was to de-clutter.

And opening the curtains was crucial, as long as the exposure was right.

"If there's a nice landscape, you really want to show that," Mr Trevarthen said.

Photographers should make sure their camera was level and not try to get everything in one shot. Shooting into corners of rooms created a sense of more space, he said.

Sometimes having a person in the photo worked in the home's favour, if he or she was placed strategically.

"It can bring a bit of life into the photo, but not if it's just someone wandering around cooking tea."

But it was still so easy to miss small details, Mr Trevarthen said.

"There are so many details you don't see until you get the photo back, pull it up on the computer and there's a window handle that's slightly crooked."

Theresa Fincham of Ultimate Homestaging said simple things made a world of difference - for instance, clear benches and dressing tables, beds made perfectly and dressed with nice pillows and excess artwork on the walls removed.

Where possible, she advised a fresh coat of paint and if curtains were old and tatty, she asked clients to take them off completely.

"Have as much light coming through as possible.

"The entranceway is also very appealing. You don't want old pots cluttering up the doorway. Stand back and really get a visual of what the first impressions will be."

Mrs Fincham said that when dressing a house she placed minimal furniture in rooms to make them look spacious. Rugs and lamp tables next to the lounge suite were important for structure and a colour theme running throughout the entire house helped with flow.

"You want a person to visualise their own furniture in there," Mrs Fincham said.

She said vendors needed to cater to every possible buyer, so it was no use creating too many children's bedrooms in case the buyer had a different family make-up.

It was difficult trying to make changes to a rental property that was for sale when it was tenanted, Mrs Fincham said. If the vendor could afford to, it was worth keeping the home vacant while it was on the market because there was a higher chance of selling for a better price.

The managing director of Auckland's DMI Homestagers, Dinah Malyon, said she took photos before and after she staged a home and the difference was "quite extreme".

"You need to act as if you've already sold, so that's getting rid of all the doilies, the cat bowls, all the family photos from the walls, anything you're not going to use in the next four or five weeks."

Alanah Eriksen

Alanah Eriksen is the New Zealand Herald's property reporter, and assistant chief reporter.

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